Capital Gains Tax

A house built in 1977 was sold in May 2008 for Rs.85.00 lacs after indexation the  indexed cost was 36.00 lacs and the capital gain was 49.00. Exemption u/s 54 was taken being amount invested in purchase of residential  plot for Rs.53.65 lacs. In Nov 2008. No construction has been done on this plot and now I want to  sell this plot and buy a house from the sale proceeds. What is the position regarding exemption already availed  under Capital Gains. Shall I have to pay tax now ? What shall be the position as regards to the second transaction i.e. sale of plot and purchase of house?   

Replies (2)
yes u have to pay tax now as u r not fulfiling the condition of sec 54...whole exemption amount will be reversed.....u have to buit a house and keep it for a minimum 3years........


 

A house built in 1977 was sold in May 2008 for Rs.85.00 lacs after indexation the  indexed cost was 36.00 lacs and the capital gain was 49.00.

 

Exemption u/s 54 was taken being amount invested in purchase of residential  plot for Rs.53.65 lacs. In Nov 2008.

 

No construction has been done on this plot and now I want to  sell this plot and buy a house from the sale proceeds. What is the position regarding exemption already availed  under Capital Gains. Shall I have to pay tax now ? What shall be the position as regards to the second transaction i.e. sale of plot and purchase of house?   


 

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